Skechers Pays $1.2 Million To Settle Overtime Class Action

A California judge has tentatively approved a $1.2 million settlement to resolve class claims by about 4,800 Skechers USA Inc. employees who alleged the shoe retailer failed to pay them for overtime worked and deprived them of meal and rest breaks. Judge Jane L. Johnson’s order provided for a maximum of $714,000 to be paid out to class members with a $357,000 minimum. Class counsel would receive $400,000, plus about $31,300 in costs. The named Plaintiffs would each receive $5,000 in incentive awards, and $36,000 would go to cover claims administration costs. Lead Plaintiff Roneshia Sayles sued the company in 2011, claiming Skechers unlawfully withheld pay from employees, including compensation for missed meal and rest breaks, overtime and earned wages, in violation of California labor laws.

Sayles, a former assistant manager, claimed Sketchers would regularly perform mandatory security checks after employees had clocked out for the day or were on their breaks in order to ensure that employees were not stealing merchandise, but refused to compensate employees for their time spent on the compulsory procedures. Sayles claimed Skechers covered up its unlawful policies by refusing to provide employees with accurate and itemized wage statements.

Employees were also required to perform customer service duties that only a limited number of sales associates were authorized to do, so many times employees had to stay on the floor to assist customers and were deprived of meal and rest breaks. Sayles also claimed that Skechers had failed to pay several of the class members the wages they had earned after they left the company. The parties reached the settlement following mediation meetings last year.